Posted on November 28, 2006 by Jason
The Guardian
CONVENTIONAL wisdom says that people in their twenties should save for
their pension as early as possible, but for the vast majority this is
unrealistic .
Under the age of 30, retirement is too far away to be a
motivating factor. Today’s 20-year-olds may not retire until they are
70. What will the world look like then? Does it now look like the world
of 1956? So which rational individual would tie up money for the next
50 years?
It’s also impractical because an increasing percentage of young people
have large debts. So advocating significant saving for retirement in 50
years’ time is not just pointless, it’s contrary to sensible financial
planning.
I’m
not saying they should spend, spend, spend. Every month, some pay
should be put aside for the future. People should put paying off
high-interest debt first, put away some ‘rainy day’ money in case of an
emergency, and then to try to get on the housing ladder.
Read more of this article.
Posted on November 28, 2006 by Jason
Chicago Tribune, November 26th, 2006
Once an expensive last resort for elderly homeowners struggling
for financial survival, reverse mortgages are now being sold as retirement
planning tools for affluent people.
Despite a softening housing market,
mortgage brokers say homeowners are using them to tap into their equity to
invest in stocks, upgrade their living quarters or simply pay expenses in lieu
of dipping into their retirement accounts too heavily.
Federally insured
reverse mortgages grew a stunning 77 percent in the fiscal year ended Sept. 30
compared with the year-earlier period, according to the National Reverse
Mortgage Lenders Association. That’s 76,351 home equity conversion mortgages,
which are available to homeowners 62 and older.
But this may be one of
those parties where it pays to arrive fashionably late. Industry growth and
soaring home values have spawned several new players–particularly in the
private jumbo-loan market–and as new products hit the market, the deals are
expected to get better, experts said.
Read more of this article.
